SIMPLE IRA - Is this an excess contribution?

[retire@40]

FYI, here's what the folks who hold the SIMPLE say:

The employee-side contribution limit is $923.50 ($1000.00 X (1/2 SE Tax rate))

The employer contribution is a 3% match of the gross income ($1000.00 X .03%) for an employer contribution of $30.00

For the love of God!

When you are self-employed, the matching contribution is based on $924, not $1,000!!!

You were correct the first time.

Ask "the folks" if they have ever read IRC Sec 1402.

 

[Martha]

For the love of God!

I don't blame you for your comment. With all this twisting in the wind, I misread what Gindie's plan provider said about how to calculate the 3% portion of the contribution. And the many varied answers from different plan providers are disturbing.

When you are self-employed, the matching contribution is based on $924, not $1,000!!!

You were correct the first time.

Ask "the folks" if they have ever read IRC Sec 1402.

Gindie, here is a link to 26 USC 1402 that defines self employment income:

http://www.law.cornell.edu/uscode/uscode26/usc_sec_26_00001402----000-.html